BOK Seen Cutting Rate to 2% Under Choi Pressure: Korea Markets

South Korea’s central bank is forecast to cut its benchmark interest rate tomorrow to the record-low 2 percent used to fight an economic slump at the height of the global financial crisis.

The seven-day repurchase rate will be lowered by 25 basis points, according to 12 of 22 analysts surveyed by Bloomberg, after being reduced to 2.25 percent in August and left unchanged last month. One predicted a more modest cut, while the rest see no change. The yield on South Korea’s three-year government debt dropped to an unprecedented 2.23 percent on Oct. 1, the first time it has fallen below the benchmark rate since July.